SMCH-IF THEY EVER TIGHTEN SPREAD
SOMETHING TO LOOK AT///.02 CENTS PROFIT FROM
A 7.00 LOSS
(COMTEX) B: SMART CHOICE AUTOMOTIVE GROUP EARNS OVER $1.2 MILLION IN
B: SMART CHOICE AUTOMOTIVE GROUP EARNS OVER $1.2 MILLION IN FIRST NINE MONTHS
OF FY2000, COMPARED WITH $1.0 MILLION LOSS IN PRIOR-YEAR PERIOD Reverse Merger
Positions Smart Choice for Profitable Future
TITUSVILLE, Fla., Mar 20, 2000 /PRNewswire via COMTEX/ -- Smart
Choice Automotive Group, Inc. (OTC Bulletin Board: SMCH), which sells
and finances used cars in Florida and Texas, today announced
substantially improved operating results for the third quarter and
first nine months of FY2000.
For the three months ended January 31, 2000, revenues increased 104% to
$34.1 million, versus $15.6 million in the third quarter of FY1999. The
Company reported a net profit of $811,410, or $0.01 per diluted share,
in the most recent quarter, compared with a net loss of $998,905, or
($6.97) per diluted share, in the prior-year period. Diluted earnings
per share were calculated on 131,143,069 weighted average diluted
shares outstanding in the quarter ended January 31, 2000, versus
143,264 shares in the year-earlier quarter. The increase in diluted
shares outstanding reflects the Company's restructuring and its reverse
merger with PAACO Automotive Group, Inc. Prior to December 1, 1999,
PAACO was a majority-owned subsidiary of Crown Group, Inc. (Nasdaq:
CNGR) and, as a result of the reverse merger, Crown Group, Inc.
currently owns 70% of Smart Choice Automotive Group, Inc. The Company's
consolidated operating results for the third quarter of FY2000 include
the results of its Texas operations (PAACO) for the entire period and
the results of its Florida operations (Smart Choice) since December 1,
1999.
For the nine-month period ended January 31, 2000, revenues increased
55% to $76.1 million, compared with $49.1 million in the corresponding
period of the previous fiscal year. Net income improved to $1,251,440,
or $0.02 per diluted share, in the first nine months of FY2000, versus
a net loss of $1,034,353, or ($7.22) per diluted share, in the first
nine months of FY1999. The Company's consolidated operating results for
the first nine months of FY2000 include the results of its Texas
operations (PAACO) from May 1, 1999 through January 31, 2000, and the
results of its Florida operations (Smart Choice) from December 31,
1999. The increase in diluted shares outstanding reflects the
abovementioned restructuring and merger.
The Company's gross profit margin improved to 35.3% in the most recent
quarter, compared with 30.6% in the prior-year period, reflecting an
increase in average unit selling prices and lower reconditioning and
vehicle acquisition costs, on average, than in the prior-year period.
The provision for credit losses approximated 19.2% of sales in the
quarter ended January 31, 2000, versus 21.4% in the year-earlier
period. Meanwhile, the SG&A expense ratio declined to 20.3% of sales,
from 24.8% in the third quarter of FY1999, as the Company benefited
from cost reductions and the elimination of duplicative activities and
personnel following the reverse merger with PAACO in December.
"We are extremely pleased to report a return to profitability following
the reverse merger with PAACO and the financial and operating
restructuring of the Company in December," stated Ed Ernst, Chief
Executive Officer of Smart Choice Automotive Group, Inc. "During the
past three months, management has worked diligently to reduce costs and
improve operating efficiencies, in order to assure that Smart Choice
will remain profitable in the future. While this will remain our
primary objective, we expect to expand our Florida and Texas
dealerships networks at a modest pace during the final quarter of
Fiscal 2000. In Florida, Smart Choice plans to open a used car
dealership in Sanford, while PAACO will add its third dealership in
Houston, prior to the end of April."
Smart Choice Automotive Group, Inc. sells and finances used cars in the
States of Florida and Texas. The Company, which is headquartered in
Titusville, Florida, currently operates eleven used car dealerships in
Florida and eleven dealerships in Texas. Its common stock trades on the
OTC Bulletin Board under the symbol "SMCH".
This press release includes statements that may constitute |
